Vietnam cuts interest rates to mitigate coronavirus impact

(VOVWORLD) - Vietnam cut its interest rates on Wednesday as it seeks to boost growth amid the coronavirus pandemic.

The State Bank of Vietnam reduced the refinancing rate from 5 percent to 4.5 percent. The dong deposit rate cap for terms of one to six months has been reduced from 4.75 percent to 4.25 percent.

This is part of the government’s efforts to help businesses and ensure social security during the Covid-19 pandemic.   

Vietnam has focused on reviving the economy towards a growth rate of beyond 5%, while inflation should be kept below 4%. It aims at 5 targets: domestic economic sectors, private and public investment, FDI attraction, exports, and domestic consumption. 

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